VAT Savings For Renovations

If work is carried out to an existing building VAT is usually chargeable at the standard rate (20%). However, some taxpayers may be eligible to be charged at the reduced rate (5%) if renovating or altering an eligible dwelling that has not been lived in during the 2 years immediately before the work starts.

Evidence may be required to show that the building has not been lived in during the 2 years immediately before work starts. Proof can be obtained from:

• Electoral Roll
• Council Tax records
• Utilities companies
• Empty Property Officers in local authorities
• Any other source that can be considered reliable

The following occupation can be ignored:

• Illegal occupation by squatters